FCA has fined and banned a former market making trader for market abuse. Adrian Horn, formerly of Stifel Nicolaus Europe Limited executed trades with himself in a series of 129 wash trades in a particular security over a 10 month period. He entered the trades in such a way as to try to avoid anyone detecting the wash trading. Mr Horn believed it was necessary for a certain number of shares of the corporate client in question to be traded each day to ensure the company remained in the FTSE All Share Index – and thought his actions would benefit the relationship between the firm and the client.
Although Mr Horn was aware his actions might constitute market manipulation, he carried on with them. However, FCA reduced his fine by 25% for the high level of cooperation he provided, and by a further 30% for settlement.